Radeberger, UB to foray into non-alcoholic beer segment

NEW DELHI: Guzzling a pack of beer with friends while watching T20 cricket match will soon be an entertaining as well as a healthy experience. For, companies such as European major Radeberger Group and the Vijay Mallya owned United Breweries are planning to enter non-alcoholic beer segment.

Clausthaler, a brand of the Radeberger group, holds 40% market share worldwide in non-alcoholic beer segment. The group, which has annual turnover of more than 1.3 billion Euros, plans to make its brand available in retail stores across India by year-end. The UB group, however, has not yet set any time frame for entering this segment.

A UB group official told SundayET that though as of now the concentration is on the strong beer segment, they’re seriously evaluating the market for non-alcoholic beer in India. When contacted, Shekhar Ramamurthy, executive vice president, sales & marketing, UB group neither confirmed nor denied the buzz. ‘’We constantly evaluate all opportunities that would strengthen our presence in the market. However we cannot specifically comment on whether we shall be entering the non-alcoholic beer market,’’ he stated in an email.

According to a report, beer sale in India is forecast to grow at a compound annual growth rate of 17.2% to 2011. And the number of brands is expected to increase with existing players including UB group and SABMiller expanding their ranges and new players such as Anheuser-Busch, Carlsberg and InBev setting up production facilities.

Clausthaler, one of Germany’s leading export brands, has distribution in more than 50 countries. The brand hopes that as people become more fitness conscious there will be a definitive shift in those picking a non-alcoholic beer from the shelf in India. ‘’Our brand is known around the world not only for it's excellent taste but also as a healthy beverage. And it will be an option for all people interested in good taste and a healthy lifestyle,’’ said Ulrich Kallmeyer, CEO, Radeberger group. The group has signed a deal with V N Dalmia owned Dalmia Continental for distribution in the Indian market.

‘’It is difficult to say whether non-alcoholic beer has potential in India. The alcoholic beer market itself is small in size in comparison to world standards - though it is growing at a healthy rate. My view is that over time non alcoholic beer could develop into a significant niche segment,’’ Ramamurthy said. Apart from Europe, non-alcoholic beer is a very popular beverage in the Middle-East countries.

In India, till date there has been no significant player in the non-alcoholic beer segment. Though foreign brands such as Beck and Carlsberg are available in high-end stores but have failed to make their presence felt. Clausthaler plans to penetrate the market by making it available at all major retail stores and also spend a sizeable amount on promotion of its brand through various channels in India.

So bid adieu to beer-bellies and Monday morning hangovers. For those who want to enjoy the taste of their beer but also want to limit the alcohol intake, non-alcoholic beer may turn out to be their ideal partner.